Chart of the Week: Inflation Predictor Model

Technimentals inflation model has been shifting higher for 2 years, mostly on the heels of escalating energy prices. Most of its commodity components have risen, while retail sales have gone stagnant, as the consumer appears weakened.

Inflation Predictor Model
click for larger chart
Inflation_prediction_1
Source: Technimentals

Average Hourly Earnings, which have increased on a Year-over-year basis, still lags behind “normal” wage growth at this stage of a recovery.

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Quote of the Day:
“All the features and achievements of modern civilization are, directly or indirectly, the products of the capitalist process.”
Joseph A. Schumpeter (1883-1950)

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